Believers hailed as reducing tax rates and relaxation springboard for control under the leadership of President Ronald Reagan and British Prime Minister Margaret Thatcher's economic miracle. Critics dismissed the same idea, so much trickle-down tricks and witchcraft.
It has been three decades of controversy "supply-side" economic policy is the political center in the United States. For now, however, talk about conservative economic thought as the center of Michael Jackson's moonwalk and the first Macintosh personal computer is the story of the 1980s. Why? Its leading supporters returned headlines.
The old memories of the economy, renewed last week, David Stockman, Reagan's budget director, launched a fierce criticized the U.S. leaders, including his former boss decision-making for many years. Continued this week, when the death of Margaret Thatcher on Monday prompted memories - some like, others not so much - How to Iron Maiden her impose its will in the long-term stagnation of the British economy.
Event confluence of what it means today's economists waxing, supply-side idea how much was abandoned in the United States or are just waiting for their moment of return, although there are differences. During this time, Arthur Laffer, American economist is often referred to as the father of supply-side, back to the TV three times Monday, to Review a warm friendship, emphasis on taxes, deficit, then wisdom and sprinkle the Mitchell role of governments and individuals are very different.
Yoram Bauman said: "We came back to a time machine," to do the rakugo the dismal science for a living, Seattle economists - who had opened a joke or two supply-side depth testing his audience knowledge and endurance.
Supply-side economists believe that by lowering interest rates, reduce taxes, to encourage work, savings and investment. Early commitment to supply-side theory may pay for itself by raising taxes, reducing tax rates. Under Reagan, the government cut tax rates, reduce government regulation, the work of the U.S. Federal Reserve to curb inflation. Management focus on reducing the rate of wealthy, labeled "trickle-down economics", reflects the belief, these gains will encourage the rich more consumption and investment to create employment opportunities for others.
This theory - and Bowman comic material, for that matter - may have found their own time, but it is not clear how long it will last.
Last week Stockman wrote a lengthy opinion piece in the New York Times, followed by interviews, to make people aware of his new book, "large deformation: the corruption of American capitalism." He Forum, from Richard Nixon to Federal Reserve Chairman Ben Bernanke (Ben Bernanke), President Barack Obama (Barack Obama) and George W Bush's decision, he says, has left the government's bloated and swimming in the fault The online fiscal deficits and decades to come.
Along the way, Stockman also criticized Reagan - which many Republicans embrace as an economic hero - "destruction inherent in running a huge deficit fiscal rectitude. Stockman, who resigned in 1985 from the management do not agree with these policies, were labeled as exaggerated criticism of some economists. However, there is no doubt that, if simply revival of memories, the economy of the 1980s - and pointed out how much the landscape has changed.
"I think that the extent anyone thinking about the supply side it nostalgia, this is not with the expectation that it is to make a comeback," Yardeni said Ed Yardeni, president and chief investment strategist at Yardeni Research
"In many ways, the supply-side revolution has opened the counter-revolutionary, promoters of big government Stockman's book is just a harsh indictment," he said.
Washington to focus on gun control, immigration reform and other issues, pay attention to the Stockman embodied in the economic debate that may not last. Thatcher's death Monday unearthed by the economic malaise in the early 1980s, the United Kingdom and the United States are burdened with memories. It is characterized by high inflation, weak financial markets, a number of economic recession, in the case of the United Kingdom, the economy, the production of goods, there is no feeling of people want to buy, "said Brian Domitrovic, author Econoclasts: who sparked the rebellion military supply-side revolution and restore America's prosperity. "
The obituary and memories, observers recalled Thatcher how to cut regulatory, tax cuts and reduce the role of government, in business, rewritten British economy. In doing so, she took some of the the economic gospel Laffer creed. According to the Washington legend, he introduced the basic knowledge of the supply side of the Nixon-era officials Dick Cheney and Donald Rumsfeld for lunch in a restaurant in 1974, not far from the White House to draw on cocktail napkins, curve shows the trade-off between tax rates and Income between.
Domitrovic old debate of the revival of economic thought is a sign that people have not forgotten the crisis of the 1970s, the Reagan and Thatcher governments wrestle with them.
"When these great names to an impressive sense of awesomeness, said:" to Domitrovic President Sam Houston State University Department of History.
Laffer, who runs the economic consulting firm in Nashville, there are still many believers in supply-side ideas, he believes that only applies to the huge deficit and economic downturn.
"I do not think this is the death of Margaret Thatcher, brought back or the resurrection of Stockman," Laffer said. "I mean, do you think the economy is doing well?"
Even now, the economics of the legacy of the 1980s is quite vibrant, he said. Laffer said Obama's pursuit of tax increases on the wealthy, in Washington, no one would consider returning inherited Reagan's policies to lower the maximum tax rate from 50% to 28%. States like Kansas and Wisconsin, many governors, most of them Republicans, are cutting taxes and reducing the size of government, he said.
Others, however, said that the economic thinking of the 1980s largely faded memories. Their predictions: even turn in the spotlight will be short-lived.
Bowman, economic comedian who advertised a series of performances in 2008 as his "supply-side tour that has changed a number of times. Bowman said the stumbling block of the old economic policy, such as a storage room rummaging through to find a bag of chocolate chips from a long time ago maturity and a delicious things may be better to leave the formula .
On the stage, he introduced himself as a supply-side economists standing joke trickle-down wins knew laugh, a line. Often brought groans of the Laffer curve but frequent performances at the university campus, he noticed a joke or just his eyes.
Bowman said, it can help in order to get the joke about the economics of the 1980s, has been there.
 
 
 



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